this is only a mixed, and not a distinct class. | as we are, might reasonably have apprehended.

No principle stated is disturbed by the existence of this mixed class.

Again, as has already been said, there is not, of necessity, any such thing as the free hired laborer being fixed to that condition for life. Many independent men everywhere in these States, a few years back in their lives, were hired laborers. The prudent, penniless beginner in the world labors for wages awhile, saves a surplus for which to buy tools or land for himself, then labors on his own account another while, and at length hires another new beginner to help him. This is the just and generous and prosperous system, which opens the way to all, gives hope to all, and consequent energy and progress, and improvement of condition to all. No men living are more worthy to be trusted than those who toil up from poverty-none less inclined to take or touch aught which they have not honestly earned. Let them beware of surrendering a political power which they already possess, and which, if surrendered, will surely be used to close the door of advancement against such as they, and to fix new disabilities and burdens upon them, till all of liberty shall be lost.

In the month of June last there were some grounds to expect that the maritime powers which, at the beginning of our domestic difficulties, so unwisely and unnecessarily, as we think, recognized the insurgents as a belligerent, would soon recede from that position, which has proved only less injurious to themselves than to our own country. But the temporary reverses which afterwards befell the national arms, and which were exaggerated by our own disloyal citizens abroad, have hitherto delayed that act of simple justice.

The civil war, which has so radically changed, for the moment, the occupations and habits of the American people, has necessarily disturbed the social condition, and affected very deeply the prosperity of the nations with which we have carried on a commerce that has been steadily increasing throughout a period of half a century. It has, at the same time, excited political ambitions and apprehensions which have produced a profound agitation throughout the civilized world. In this unusual agitation we have forborne from taking part in any controversy between foreign States, and between parties or factions in such States. We have attempted no propagandism, and acknowledged no revolution. But we have left to every nation the exclusive conduct and management of its own affairs. Our struggle has been, of course, contemplated by foreign nations with reference less to its own merits than to its supposed and often exaggerated effects and consequences resulting to those nations themselves. Nevertheless, complaint on the part of this Government, even if it were just, would certainly be unwise.

From the first taking of our national census to the last are seventy years; and we find our population at the end of the period eight times as great as it was at the beginning. The increase of those other things which men deem desirable has been even greater. We thus have, at one view, what the popular principle applied to government, through the machinery of the States and the Union, has produced in a given time, and also what, if firmly maintained, it promises for the future. There are already among us those who, if the Union be preserved, The treaty with Great Britain for the supwill live to see it contain two hundred and fifty pression of the slave trade has been put into millions. The struggle of to-day is not alto-operation with a good prospect of complete gether for to-day-it is for a vast future also. With a reliance on Providence, all the more firm and earnest, let us proceed in the great task which events have devolved upon us.

ABRAHAM LINCOLN. WASHINGTON, December 3, 1861.

President Lincoln's Second Annual
Message, December 1, 1862.

Fellow-citizens of the Senate

and House of Representatives: Since your last annual assembling another year of health and bountiful harvests has passed. And while it has not pleased the Almighty to bless us with a return of peace, we can but press on, guided by the best light He gives us, trusting that in His own good time, and wise way, all will yet be well.

success. It is an occasion of special pleasure to acknowledge that the execution of it, on the part of her Majesty's Government, has been marked with a jealous respect for the authority of the United States, and the rights of their moral and loyal citizens.

The convention with Hanover for the abolition of the stade dues has been carried into full effect, under the act of Congress for that purpose.

A blockade of three thousand miles of seacoast could not be established, and vigorously enforced, in a season of great commercial activity like the present, without committing occasional mistakes and inflicting unintentional injuries upon foreign nations and their subjects.

A civil war occurring in a country where foreigners reside and carry on trade under treaty stipulations, is necessarily fruitful of The correspondence touching foreign affairs complaints of the violation of neutral rights. which has taken place during the last year is All such collisions tend to excite misapprehenherewith submitted, in virtual compliance with sions, and possibly to produce mutual reclamaa request to that effect made by the House of tions between nations which have a common Representatives near the close of the last ses-interest in preserving peace and friendship. In sion of Congress.

If the condition of our relations with other nations is less gratifying than it has usually been at former periods, it is certainly more satisfactory than a nation so unhappily distracted

clear cases of these kinds I have, so far as possible, heard and redressed complaints which have been presented by friendly Powers. There is still, however, a large and an augmenting number of doubtful cases upon which the Gov

Our relations with Great Britain, France, Spain, Portugal, Russia, Prussia, Denmark, Sweden, Austria, the Netherlands, Italy, Rome, and the other European States, remain undisturbed. Very favorable relations also continue to be maintained with Turkey, Morocco, China, and Japan.

ernment is unable to agree with the Govern- | merce is expected to result from these measments whose protection is demanded by the ures.. claimants. There are, moreover, many cases in which the United States, or their citizens, suffer wrongs from the naval or military authorities of foreign nations, which the Governments of those States are not at once prepared to redress. I have proposed to some of the foreign States, thus interested, mutual conventions to examine and adjust such complaints. This proposition has been made especially to Great Britain, to France, to Spain, and to Prussia. In each case it has been kindly received, but has not yet been formally adopted. I deem it my duty to recommend an appropriation in behalf of the owners of the Norwegian bark Admiral P. Tordenskiold, which vessel was, in May, 1861, prevented by the commander of the blockading force off Charleston from leaving that port with cargo, notwithstanding a similar privilege had, shortly before, been granted to an English vessel. I have directed the Secretary of State to cause the papers in the case to be communicated to the proper committees.

Applications have been made to me by many free Americans of African descent to favor their emigration, with a view to such colonization as was contemplated in recent acts of Congress. Other parties, at home and abroadsome from interested motives, others upon patriotic considerations, and still others influenced by philanthropic sentiments-have suggested similiar measures; while, on the other hand, several of the Spanish-American republics have protested against the sending of such colonies to their respective territories. Under these circumstances, I have declined to move any such colony to any State, without first obtaining the consent of its government, with an agreement on its part to receive and protect such emigrants in all the rights of freemen; and I have, at the same time, offered to the several States situated within the tropics, or having colonies there, to negotiate with them, subject to the advice and consent of the Senate, to favor the voluntary emigration of persons of that class to their respective territories, upon conditions which shall be equal, just, and humane. Liberia and Hayti are, as yet, the only countries to which colonists of African descent from here, could go with certainty of being received and adopted as citizens; and I regret to say such persons, contemplating colonization, do not seem so willing to migrate to those countries, as to some others, nor so willing as I think their interest demands. I believe, however, opinion among them in this respect, is improving; and that, ere long, there will be an augmented, and considerable migration to both these countries, from the United States.

The new commercial treaty between the United States and the Sultan of Turkey has been carried into execution.

A commercial and consular treaty has been negotiated, subject to the Senate's consent, with Liberia; and a similar negotiation is now pending with the republic of Hayti. A considerable improvement of the national com

During the last year there has not only been no change of our previous relations with the independent States of our own continent, but more friendly sentiments than have heretofore existed, are believed to be entertained by these neighbors, whose safety and progress are so intimately connected with our own. This statement especially applies to Mexico, Nicaragua, Costa Rica, Honduras, Peru, and Chile.

The commission under the convention with the republic of New Granada closed its session without having audited and passed upon all the claims which were submitted to it. A proposition is pending to revive the convention, that it may be able to do more complete justice. The joint commission between the United States and the republic of Costa Rica has completed its labors and submitted its report.

I have favored the project for connecting the United States with Europe by an Atlantic telegraph, and a similar project to exend the telegraph from San Francisco, to connect by a Pacific telegraph with the line which is being extended across the Russian empire.

The Territories of the United States, with unimportant exceptions, have remained undisturbed by the civil war; and they are exhibiting such evidence of prosperity as justifies an expectation that some of them will soon be in a condition to be organized as States, and be constitutionally admitted into the Federal Union.

The immense mineral resources of sonie of those Territories ought to be developed as rapidly as possible. Every step in that direction would have a tendency to improve the revenues of the Government, and diminish the burdens of the people. It is worthy of your serious consideration whether some extraordinary measures to promote that end cannot be adopted. The means which suggests itself as most likely to be effective, is a scientific exploration of the mineral regions in those Territories, with a view to the publication of its results at home and in foreign countries-results which cannot fail to be auspicious.

The condition of the finances will claim your most diligent consideration. The vast expenditures incident to the military and naval operations required for the suppression of the rebellion, have hitherto been met with a promptitude and certainty unusual in similar circumstances; and the public credit has been fully maintained. The continuance of the war, however, and the increased disbursements made necessary by the augmented forces now in the field, demand your best reflections as to the best modes of providing the necessary revenue, without injury to business, and with the least possible burdens upon labor.

The suspension of specie payments by the banks, soon after the commencement of your

last session, made large issues of United States | which sum $49,056,397 62 were derived from notes unavoidable. In no other way could the customs; $1,795,331 73 from the direct tax; payment of the troops, and the satisfaction of from public lands, $152,203 77; from miscelother just demands, be so economically or so laneous sources, $931,787 64; from loans in well provided for. The judicious legislation of all forms, $529,692,460 50. The remainder, Congress, securing the receivability of these $2,257,065 80, was the balance from last year. notes for loans and internal duties, and making The disbursements during the same period them a legal tender for other debts, has made were for congressional, executive, and judicial them an universal currency; and has satisfied, purposes, $5,939,009 29; for foreign interpartially, at least, and for the time, the long course, $1,339,710 35; for miscellaneous exfelt want of an uniform circulating medium, penses, including the mints, loans, post office saving thereby to the people immense sums in deficiencies, collection of revenue, and other discounts and exchanges. like charges, $14,129,771 50; for expenses under the Interior Department, $3,102,985 52; under the War Department, $394,368,407 36; under the Navy Department, $42,674,569 69; for interest on public debt, $13,190.324 45; and for payment of public debt, including reimbursement of temporary loan, and redemptions, $96,096,922 09; making an aggregate of $570,841,700 25, and leaving a balance in the Treasury on the first day of July, 1862, of $13,043,546 81.

966 98. For the last fiscal year it was reduced | their vicinity with extreme ferocity, killing, into $2,112,814 57. These favorable results are discriminately, men, women. and children. in part owing to the cessation of mail service This attack was wholly unexpected, and, therein the insurrectionary States, and in part to a fore, no means of defence had been provided. careful review of all expenditures in that De- It is estimated that no less than eight hundred partment in the interest of economy. The persons were killed by the Indians, and a large efficiency of the postal service, it is believed, amount of property was destroyed. How this has also been much improved. The Postmaster outbreak was induced is not definitely known, General has also opened a correspondence, and suspicions, which may be unjust, need not through the Department of State, with foreign be stated. Information was received by the Governments, proposing a convention of postal Indian bureau, from different sources, about representatives for the purpose of simplifying the time hostilities were commenced, that a the rates of foreign postage, and to expedite simultaneous attack was about to be made upon the foreign mails. This proposition, equally the white settlements by all the tribes between important to our adopted citizens, and to the the Mississippi river and the Rocky Mountains. commercial interests of this country, has been The State of Minnesota has suffered great infavorably entertained, and agreed to, by all the jury from this Indian war. A large portion of Governments from whom replies have been her territory has been depopulated, and a received. severe loss has been sustained by the destruction of property. The people of that State manifest much anxiety for the removal of the tribes beyond the limits of the State as a guarantee against future hostilities. The Commissioner of Indian Affairs will furnish full details. I submit for your special consideration whether our Indian system shall not be remodelled. Many wise and good men have impressed me with the belief that this can be profitably done.

I ask the attention of Congress to the suggestions of the Postmaster General in his report respecting the further legislation required in his opinion, for the benefit of the postal service. The Secretary of the Interior reports as follows in regard to the public lands:

I submit a statement of the proceedings of

"The public lands have ceased to be a source of revenue. From the 1st of July, 1861, to the 30th September, 1862, the entire cash receipts from the sale of lands were $137,476 26-a sum much less than the expenses of our land system during the same period. The home-commissioners, which shows the progress that stead law, which will take effect on the 1st of January next, offers such inducements to settlers, that sales for cash cannot be expected, to an extent sufficient to meet the expenses of the General Land Office, and the cost of surveying and bringing the land into market."

The discrepancy between the sum here stated as arising from the sales of the public lands, and the sum derived from the same source as reported from the Treasury Department arises, as I understand, from the fact that the periods of time, though apparently, were not really, coincident at the beginning point-the Treasury report including a considerable sum now, which had previously been reported from the Interior-sufficiently large to greatly overreach the sum derived from the three months now reported by the Interior, and not by the Treasury.

has been made in the enterprise of constructing the Pacific railroad. And this suggests the earliest completion of this road, and also the favorable action of Congress upon the projects now pending before them for enlarging the capacities of the great canals in New York and Illinois, as being of vital, and rapidly increasing importance to the whole nation, and especially to the vast interior region hereinafter to be noticed at some greater length. I propose having prepared and laid before you at an early day some interesting and valuable statistical information upon this subject. The military and commercial importance of enlarging the Illinois and Michigan canal, and improving the Illinois river, is presented in the report of Colonel Webster to the Secretary of War, and now transmitted to Congress. I respectfully ask attention to it.

The Indian tribes upon our frontiers have, To carry out the provisions of the act of Conduring the past year, manifested a spirit of in-gress of the 15th of May last, I have caused the subordination, and, at several points, have Department of Agriculture of the United States engaged in open hostilities against the white to be organized. settlements in their vicinity. The tribes occupying the Indian country south of Kansas, renounced their allegiance to the United States, and entered into treaties with the insurgents. Those who remained loyal to the United States were driven from the country. The chief of the Cherokees has visited this city for the purpose of restoring the former relations of the tribe with the United States. He alleges that they were constrained, by superior force, to enter int> treaties with the insurgents, and that the United States neglected to furnish the protection which their treaty stipulations required.

In the month of August last the Sioux Indians, in Minnesota, attacked the settlements in

The Commissioner informs me that, within the period of a few months this department has established an extensive system of correspondence and exchanges, both at home and abroad, which promises to effect highly beneficial results in the development of a correct knowledge of recent improvements in agriculture, in the introduction of new products, and in the collection of the agricultural statistics of the different States.

Also that it will soon be prepared to distribute largely seeds, cereals, plants and cuttings, and has already published, and liberally diffused, much valuable information in anticipation of a more elaborate report, which will in due time be furnished, embracing some valuable tests in